Investors on the Nigerian Stock Exchange (NSE) on Friday reacted negatively to the reappointment of Mr Godwin Emefiele for second term as the Central Bank of Nigeria (CBN) Governor by President Muhammadu Buhari.
Area News reports that contrary to market operators’ expectations, the crucial market indices maintained negative outlook for fifth consecutive days.
Specifically, the market capitalization which opened at N10.860 trillion shed N20 billion to close at N10.840 trillion. In the same vein, the All-Share Index lost 48.44 points or 0.17 per cent to close at 28,847.81 against 28,896.25 recorded on Thursday.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd., attributed the development to low liquidity and weak market fundamentals.
“Equity segment of the financial market did not react positively to the reappointment of CBN governor due to prevailing low liquidity and weak market fundamental,” Omordion said. He said that fixed income segment witnessed bullish trading due to the positive news of the governor’s reappointment.
Omordion said that the reappointment showed Buhari’s readiness and interest in reactivating the economy again. He noted that monetary stability was a key pointer to assure investors of continuity and stable exchange rate.
Omordion said that Emefiele’s monetary policy supported the economy despite the deficit position of the government all these years. He said that financial market regulators should come together and help market makers to have access to cheap funds to boost activities in the stock market.
Omordion noted that pension and the sovereign wealth funds should play more in the stock market to create liquidity. Stanbic IBTC led the gainers’ table during the day, gaining N2.30 to close at N46 per share.
Guinness followed with a gain of N1.50 to close at N51.50, while ETI gain 20k to close at N10.30 per share UACN also appreciated by 20k to close at N6.95, while NEM Insurance gained 18k to close at N2.50 per share.
On the other hand, Seplat recorded the highest loss during the day, shedding N57.90 to close at N522 per share. Africa Prudential Registrar trailed with a loss of 39k to close at N3.54, while Guaranty Trust Bank lost 30k to close at N32 per share.
Eterna was down by 29k to close at N3.90, while Mansard Insurance declined by 14k to close at N1.81 per share. NAN reports that Sovereign Trust Insurance drove the activity chart exchanging 44.54 million shares worth N11.14 million.
Sterling Bank followed with an account of 24.73 million shares valued at N65.77 million, while Access Bank sold 20.97 million shares worth N147.47 million Zenith Bank traded a total of 16.64 million shares valued at N332.83 million, while Transcorp sold 16.38 million shares worth N18.31 million.
In all, a total of 235.23 million shares valued at N1.36 billion were traded by investors in 3,130 deals. This was against the 215.20 million shares worth N2.05 billion achieved in 5,646 deals on Thursday.
‘No plans to relocate NGC headquarters from Niger Delta’
The Nigeria National Petroleum Corporation (NNPC) has assured stakeholders that it has no plans to relocate headquarters of its subsidiary, Nigerian Gas Company (NGC) from Delta State.
A statement by the Group General Manager, Group Public Affairs Division, Ndu Ughamadu, described as unfortunate, statement credited to Deputy President of the Senate, Ovie Omo-Agege, where he reportedly condemned alleged moves by the corporation to relocate the NGC headquarters from the Niger Delta.
Ughamadu called on the NGC host communities and other stakeholders to disregard the relocation tale, which he described as “totally false”. He maintained that Omo-Agege may have been misinformed or was quoted out of context as the subject of relocation of NGC was never on the table for deliberation.
NNPC promised to ensure harmonious relationship with stakeholders and host communities to entrench a win-win scenario for all.
Buhari signs AfCFTA agreement at AU Summit
President Muhammadu Buhari in Niamey, Niger Republic, signed the African Continental Free Trade Area (AfCFTA) agreement, making Nigeria the 53rd state on the continent to append its signature to the document.
Reports reaching Area News, indicated that the president signed the agreement at exactly 10.47 am local time
Buhari had delayed in signing the agreement, which entered into force May 30, 2019.
The delay was to give room for extensive consultations with stakeholders, culminating in the submission of the report by the Presidential Committee to Assess Impact and Readiness of Nigeria to join the free trade area.
The committee had recommended that Nigeria should sign the agreement which aims to boost intra-African trade.
In accepting the report as submitted, the President made it clear that Nigerian government would be seeking to include terms that engender the development of policies that promote African production, among other benefits.
President Buhari said: “Africa, therefore, needs not only a trade policy but also a continental manufacturing agenda.
“Our vision for intra-African trade is for the free movement of `made in Africa goods’. That is, goods and services made locally with dominant African content in terms of raw materials and value addition.
“If we allow unbridled imports to continue, it will dominate our trade. The implication of this is that coastal importing nations will prosper while landlocked nations will continue to suffer and depend on aid.’’
The AfCFTA is expected to be the world’s largest free trade area since the formation of the World Trade Organization, with a potential market of 1.2 billion people.
CIFI N20bn loans: Access Bank begins disbursement to creative sector
Access Bank has commenced disbursement of loans to beneficiaries in the entertainment industry, under the Creative Industry Financing Initiative of the Central Bank of Nigeria.
The bank disclosed this during a forum with some stakeholders in the entertainment industry in Lagos on Tuesday.
It said the first tranche of the CIFI loans worth N20bn, would be made easily accessible to the borrowers in the sector.
Bidemi Adeboye of Access Bank said stakeholders in the creative industries such as fashion, Information Technology, movie production, movie distribution, music and software engineering student could access the loans.
When all documentations were completed and the loans approved, the bank would ensure the beneficiaries got the funds within two weeks, he said.
He added, “The CBN wants to create jobs, develop local capacity, preserve foreign exchange and ensure empowerment in the entertainment industry.
“It is more interested in providing infrastructure funding such as film house, equipment, studio, auditorium, which will make it easier for the entertainers to operate at lower cost and be able to make profit.”
He explained that the loan had maximum interest rate of nine per cent per annum and a repayment period of up to 10 years.
According to him, those who would access the loans should come up with business plan or statement; they must be registered and should be doing what had economic benefits.
Chizoma Okoli of Access Bank said that the CIFI loan was introduced by the CBN to support the creative sector.
She said the bank decided to organise the forum with the stakeholders in the entertainment industry, to get more ideas from them on how best they could disburse the funds to them, and the documents they would need.
Music star, Oladapo Oyebanjo, popular known as D’banj, urged the bank to make the loans easily accessible as promised.
He said, “Most times when we apply for loans, it usually takes up to six months for us to get such. This will be a good development if we can access the loans within two weeks.”