Nigerian Stocks No Longer Attractive to Offshore Investors as FX Crisis Lingers – Business Post Nigeria

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By Aduragbemi Omiyale
Domestic investors have now taken full control of the Nigerian Exchange (NGX) Limited, outclassing their foreign portfolio investors (FPIs) counterparts.
In the past seven months, local investors have completed trades worth N1.490 trillion, while offshore investors have only managed transactions worth N273.16 billion in the period under consideration as Nigerian stocks are no longer attractive to them.
According to the Domestic and Foreign Portfolio Investment (FPI) July 2022 report which captured these transactions as well as trading figures from market operators, domestic transactions stood at N1.465 trillion in the first seven months of 2021 while foreign transactions stood at N435 billion in the same period.
This meant that total domestic transactions on the NGX grew by 1.70 per cent while foreign transactions dropped by 37.24 per cent.
Although, the July report revealed that total transactions at the nation’s bourse decreased by 35.36 per cent from N156.52 billion (about $371.53 million) in June 2022 to N101.18 billion (about $236.86 million) in July 2022, the performance of the current month, however, when compared to the performance in July 2021 (N89.77 billion), total transactions increased by 12.71 per cent.
Furthermore, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by 42 per cent while domestic inflows and outflows stood at N36.97 billion and N34.53 billion respectively, in the month of July 2022.
On the flip side, foreign inflows recorded N13.68 billion while foreign outflows stood at N16 billion. This decline, according to analysts, is due to the scarcity of FX currently bedevilling the economy.
Since the outbreak of COVID-19, inflows across capital importation, loans, diaspora remittances, exports, income from investments and other autonomous sources have been dwindling.
However, domestic investors have continued to hold their ground on the floor of the NGX despite rising inflation and currency volatility in the foreign exchange market, which remained key drivers of domestic & foreign portfolio investment.
Over a 15-year period, domestic transactions had decreased by 58.80 per cent from N3.556 trillion in 2007 to N1.465 trillion in 2021 whilst foreign transactions also decreased by 29.38 per cent from N616 billion to N435 billion over the same period.
On the other hand, total domestic transactions accounted for about 77 per cent of the total transactions carried out in 2021, whilst foreign transactions accounted for about 23 per cent of the total transactions in the same period.
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Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.
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By Dipo Olowookere
The Nigerian Exchange (NGX) Limited has announced the lifting of the suspension placed on Mutual Benefits Assurance Plc on July 1, 2022.
For nearly two months, investors could not buy and sell shares of the underwriting company because of the action of the exchange.
The insurance firm had failed to file its financial statements to the bourse for the perusal of the investing public and after efforts to make the organisation comply with the listing rules failed, the company was prohibited from trading its stocks on the platform.
Mutual Benefits was among the nine firms suspended by the NGX about two months ago. After it submitted its results, the suspension was lifted, allowing shareholders to trade their stocks from today, Monday, August 22, 2022.
In a notice issued today, the Nigerian Exchange confirmed that the insurer has filed its audited financial statements for the year ended December 31, 2021, and unaudited financial statements for the quarters ended March 31, and June 30, 2022.
“We refer to our market bulletin dated July 1, 2022, with Reference Number: NGXREG/LRD/MB37/22/07/01 wherein we notified trading license holders and the investing public of the suspension in the trading on the securities of nine listed companies for non-compliance with the provisions of Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (Default Filing Rules), which provides that: if an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will a.           send to the issuer a second filing deficiency notification within two business days after the end of the cure period b.      suspend trading in the issuer’s securities; and c.         notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.
“Mutual Benefits Assurance Plc, one of the nine (9) listed companies that were suspended on July 1, 2022, has now filed its audited financial statements for the year ended December 31, 2021, and unaudited financial statements for the quarters ended March 31 and June 30, 2022.
“In view of the company’s submission of these financial statements, and pursuant to Rule 3.3 of the Default Filing Rules, which states that the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the exchange is satisfied that the accounts comply with all applicable rules of the exchange. The exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension, that the suspension has been lifted, trading license holders and the investing public are hereby notified that the suspension placed on trading on the shares of Mutual Benefits Assurance Plc has been lifted on Monday, August 22, 2022,” the disclosure read.
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By Adedapo Adesanya
First Primus Group, the WPP Partner agency in Nigeria, has appointed Mr Vikas Parihar as Chief Digital Officer at the group level.
Mr Parihar, in his new role, will drive digital transformation and business for the group, partnering with individual agency MDs and country managers, implementing global digital practices, providing strategic leadership for digital integration, and paving the digital roadway for the group.
In a statement made available to Business Post, the company said – “With rich experience spanning over 16 years, Vikas has led digital business and marketing for FCB India as group President Digital Integration for India, OgilvyOne Africa as a Managing Director, Havas Worldwide India as Senior Vice President, Vice president for MagnonTBWA group in India and Internet Moguls, Director of Marketing communications for Sofitel Luxury Hotels and Resorts India and have been a part of Hinduja Group and Hotel Leela Venture as well.
“His experience ranges across numerous sectors including FMCG, Technology, Healthcare, Travel and Hospitality, Social Development/ Tech for Good, eCommerce, Consumer Durables and Electronics. He has lent his expertise to various brands, such as UNICEF, Plan India, Airtel Africa, Coca-Cola Africa, Standard Chartered Bank, Care India, HCL Healthcare, Huawei, Microsoft Lumia, Jindal Steel and Power, Mercedes Benz India, UTV, Toshiba, Daikin, Turkey Tourism, TATA group companies and many more.”
Mr Parihar will be joining with a unique combination of skills ranging from a passion for business and numbers to strategy, creativity, data, and technology. He is a certified customer experience management professional from the Indian Institute of Management Kozhikode, a design thinking practitioner and a certified storyteller using data visualisation from the USA.
In his career, he worked very actively on large technology assignments in the field of Marketing Automation, Tech for Good platform, enterprise solutions, SAAS solutions, and consumer technology products.
He has been active for the past 7 years in the field of blockchain, NFT, UX, Data science and analytics, facial recognition products, and AI/ML.
Commenting on the appointment, Founder/ Group CEO, First Primus Mr Seni Adetu said: “We have consistently emphasised our intent at partnering with other leading marketing agencies in transforming the marketing communications standards in Nigeria. Hopefully, by bringing on board a seasoned Digital Marketing expert such as Vikas in service of that ambition, it is evident this is not business as usual.”
Speaking of his new role, Mr Parihar said, “In today’s connected world, we need a creative agency which focuses on customer experience and brings together big ideas, technology, and data. These ingredients are key to creating compelling and engaging personal experiences that help win more customers and make them more valuable. And this is what I look forward to building at First Primus Nigeria.”
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By Adedapo Adesanya
The Minister of Transport, Mr Muazu Sambo, has said that the Lekki Deep Seaport project would create about 112,000 jobs for Nigerians upon its completion.
Mr Sambo said this on Sunday in Jalingo, Taraba state capital, noting that the port, which will be the second in Nigeria after Onne Deep SeaPort would bring more tonnage and swell the revenue to the port and as a result to the country.
He further said the importance of the project would impact positively on the nation’s economy.
“The Lekki Deep seaport project is the second after Onne Deep Sea Port in Nigeria.
“It is significant because the largest ships in the world can berth at the port.
“That means more tonnage, more cargo, more revenue for the port and for the country, more economic activities.
“And above all more jobs like I said, over 112,000 both direct and indirect jobs will be created as a result of the creation of the Lekki deep seaport.
“This will be in the first few years and as time goes on and as activities expand, the number of jobs will even multiply and that is what is good for us.
“For as more jobs we have, the more our ability to put food on the table of many Nigerians,” Mr Sambo said.
Due to be completed in the first quarter of 2023, the seaport occupies 90 hectares of the entire 830 hectares of land carved out for the Lagos Free Zone. The zone was created in 2012 to enhance the economic position of Lagos as a manufacturing and logistics hub in West Africa.
The project commenced in 2017 under the administration of former Lagos state governor, Mr Akinwunmi Ambode and is being constructed by the China Habour Engineering Firm.
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