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BUSINESS: Investors Gain N3.28tr In Three Weeks

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At the weekend, major global equities lagged behind Nigerian equities in a steady surge that had seen investors win about N3.3 trillion over the previous three weeks.

Equities closed at the weekend with an average return of 5.49 percent, the highest among the main global indices, with more than three-quarters of trades at the stock market being completed at a premium.

Nigeria’s average year-to-date return has increased to 15.12 percent, placing it in the top quartile of all countries with respect to share price growth so far this year, thanks to the persistent rally that was sparked by President Bola Tinubu’s inauguration on May 29.

The All Share Index (ASI)- the common value-based index that tracks all share prices at the Nigerian Exchange (NGX), rose to 59,000.96 points at the weekend, representing a return of 5.49 percent on the week’s opening index of 55,930.97 points. This implied a net capital gain of N1.67 trillion within the four-day trading session last week.

The performance of equities was ahead of other global indices, which also showed a broadly positive global sentiment.

In the United States (U.S.), the Dow Jones Industrial Average and S & P 500 Index closed the week with average returns of 1.6 percent and 3.0 percent respectively.

The FTSE 100 Index in the United Kingdom (UK) appreciated by 1.3 percent, while Japan’s Nikkei 225 Index rose by 4.5 percent. China’s SSE posted an average gain of 1.3 percent.

The MSCI EM- which tracks emerging markets, rose by 2.1 percent while the MSCI FM – which tracks frontier markets, appreciated by 1.0 percent.

For three consecutive weeks, the local equities have sustained a strong bullish momentum as the Tinubu administration begins the implementation of key policy reforms encapsulated in his manifesto and further enunciated in the May 29 inaugural address.

In a speech that had been described as market-friendly, Tinubu addressed general issues of security, economy, infrastructure, and monetary outlook. The president also directly addressed investors’ concerns on multiple taxations, returns repatriation, and foreign exchange (forex) among others.

“I have a message for our investors, local and foreign, our government shall review all their complaints about multiple taxations and various anti-investment inhibitions. We shall ensure that investors and foreign businesses repatriate their hard-earned dividends and profits home,” Tinubu said, immediately after his inauguration at the Eagle Square, Abuja.

The new administration has since given effect to the stoppage of the fuel subsidy, abolished the multiple forex rates, and instituted probes into major issues of public finance.

The ASI, which opened May 29 at 52,973.88 points, has gained 11.38 percent over the past three weeks, equivalent to net capital gains of N3.28 trillion.

The aggregate market value of all quoted equities at the NGX rose concurrently from its opening value of N28.845 trillion on May 29, to N32.126 trillion at the weekend, an increase of N3.28 trillion.

Market analysts were unanimous that the sustained rally was in response to Tinubu’s pro-market stance, with many of them predicting that a rebound in foreign direct and portfolio inflows would lead to repricing of Nigerian stocks, which had been underpriced by long-running apathy from foreign investors.

Managing Director, APT Securities and Funds Limited, Mallam Garba Kurfi, said the market was responding to the expectations of reforms implied in the president’s address.

Kurfi said: “The speech is excellent, especially as regards converging exchange rate into one; that will attract inflow of foreign Investors. The removal of fuel subsidy will attract more investments in the refineries and removal of double taxes will also bring more Investments into the country, and all these will reduce unemployment and increase productivities.”

Group Executive Director, Investment Banking, Cordros Capital, Mr. Femi Ademola, said the market was expectedly to respond to the pro-economy outlook of the Tinubu administration.

He said the peaceful transition of power and the inaugural speech of the president “struck the right cords” since markets react to sentiments.

According to him, the market is expected to react very strongly and positively to the government agenda including end to fuel subsidy, lower interest rates, end to multiple exchange rates, and ease of capital repatriation by foreign investors.

He said: “These are expected to attract investments back into the country as investors return and strengthen the country’s exchange rate. Perhaps, one very notable issue is the issue of lower interest rates.

“This may indicate that the administration will not be looking at attracting portfolio investment with high-interest rates but more likely direct and patient investment that would stay for a longer period.

“While the market may still continue with its usual zigzag movements, the implementation of these policy reforms would ensure more positive movements on the market than negative.

“Supporting the monetary policy changes with the required fiscal reforms such as infrastructure development would add to the sustainability of the growth plan for the economy.

“I am happy with the inaugural speech and the plans of action as it is what is needed at this time. However, it has to go beyond words and intentions; the administration must hit the ground and run with the implementation of the policies.”

Chief Operating Officer at GTI Capital Group, Mr. Kehinde Hassan, said the general economic outlook enunciated by the president would herald new thematic growth for the economy.

He said investors appeared favorably disposed to the various initiatives, noting that the market response was a sort of a vote of confidence in the president’s economic direction.

Afrinvest Securities said “economy reform optimism” bolstered the market performance, noting that “the rally in the market followed the promise of critical reforms by the President Bola Tinubu administration”.

Coronation Securities Limited said: “President Bola Ahmed Tinubu’s inaugural address was given yesterday (Monday), and it sparked the equity market’s imagination, with a rally of 5.23 percent today (yesterday).

“The announcement of key market reforms, including phasing out fuel subsidies and unifying foreign exchange rates, shows that pro-market policies were not just items in the manifesto but issues which he is setting out to fix. If they are fixed, we expect much more from the equity market.”

 

Credit: The Nation

BIG STORY

High Court Rejects Nnamdi Kanu’s Plea For Bail, House Arrest

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The leader of the proscribed Indigenous People of Biafra (IPOB), Nnamdi Kanu, had another bail application denied by a federal high court in Abuja.

The presiding judge, Binta Nyako, also rejected Kanu’s request to be moved from the Department of States Services (DSS) to a correctional facility.

Additionally, the defendant’s plea to be put under house arrest was denied.

The federal government has proposed a seven-count indictment against Kanu that borders on treasonable felony.

Kanu is currently facing trial on this charge.

Remember how the court granted Kanu bail in 2017 despite the federal government’s treasonable felony accusations against him?

However, the court revoked Kanu’s bail and issued a bench warrant for his arrest after he failed to present himself as required.

The IPOB leader was rearrested in Kenya in 2021 and extradited to Nigeria, after being on the run for a few years.

In April 2022, Nyako struck out eight of the 15 counts in the charge.

The remaining seven counts were also quashed by the court of appeal on October 13, 2022, with the judge ordering Kanu’s release.

However, on October 28, 2022, the court of appeal granted a stay of execution on its verdict discharging Kanu, after the federal government filed an appeal at the supreme court.

On December 15, 2023, a five-member panel of the apex court reversed the verdict of the appeal court and ordered Kanu to resume his trial before the federal high court.

  • Bail Application

In the fresh bail application, Kanu asked the court to restore his bail which was revoked in 2017.

In the alternative, he asked to be removed from the custody of the DSS and placed under house arrest, or to be remanded in prison.

The defendant said contrary to the federal government’s claim, he did not jump bail or breach any of the conditions of the 2017 bail, but had to flee the country when soldiers allegedly invaded his house in Abia.

He told the court that he would have been killed if he had not escaped the way he did, and accused the federal government of misleading the court in getting the bail revoked.

He also asked the court to set aside the arrest warrant issued against him by the court while he was out of the country.

He also alleged that he does not get proper medical services in DSS custody and he is unable to properly prepare for his defence due to restricted access to his lawyers.

Delivering the ruling, Nyako refused the application of the defendant.

She noted that those who stood surety for the defendant in 2017 had approached the court and applied to be discharged after Kanu escaped from the country.

She held that the sureties, in their applications, claimed that they were not aware of the whereabouts of the defendant, a scenario that forced the court to order the forfeiture of their N100 million bail bonds.

According to the trial court, the issue is currently pending before the court of appeal.

The court held that having refused Kanu’s request for bail on several occasions, the only option available to him was to take the matter before the appellate court.

However, the judge ordered the DSS to always grant Kanu access to his lawyers not exceeding five persons on every visiting day.

It ordered that Kanu must be given “a clean place” to consult with his lawyers at the DSS detention facility, adding that he must be granted access to a doctor of his choice.

Nyako warned that any attempt by Kanu’s legal team to file similar applications before the court would be regarded as a gross abuse of the judicial process.

“You have an option of appeal, please exercise your right of appeal,” the trial judge added.

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I Need 35 Visas To Travel Within Africa But French Investors Don’t — Dangote

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Aliko Dangote, Africa’s richest person, says he still faces difficulties travelling in Africa with his Nigerian passport.

Dangote spoke recently at the Africa CEO Forum Annual Summit in Kigali, Rwanda.

“I still complained to President Kagame. I told him that as an investor, I have to now apply for 35 different visas on my passport, and I told Mr. President, I really don’t have the time to go and be dropping my passports in embassies to get a visa,” he said.

“But you see, the most annoying thing is that yes, if you are treating everybody the same, then I can understand.”

Using the French passport as an example, Dangote said Patrick Pouyanne, chairman of Total Energies, does not need 35 visas on his French passport to gain access to African countries.

“You don’t need 35 visas on your French passport. This means you have a freer movement than myself in Africa,” he said.

Speaking further on businesses within Africa, he said right now, “our main job is to make sure the regional markets all work. Once they work, then we can now go to Africa Continental Free Trade Agreement (AfCFTA). But then, for AfCFTA also, we need to make sure that it works”.

“We cannot have a very promising continent and our intra-trade rate is less than 16 percent. Okay, so we Africans will have to do it. If we are waiting for foreigners to come and do it, both the development of Africa, it’s not going to happen,” he said.

“So it can only happen to us Africans. We must risk our sources and make sure that we lead, then we will have people who actually trust and believe in Africa like Patrick to come and help us to push to the next level.”

Also, at the event, the business mogul announced that Nigeria will not have to import petrol into the country by June when Dangote refinery commences production of the product.

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CSO Lauds Navy’s ‘Impressive Results’ In Fight Against Crude Oil Theft

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The Nigerian Navy has received praise from the Civil Centre on Security and Governance (CCSG) for its achievements in thwarting crude oil theft and boosting public revenue.

Speaking on Sunday at a press conference in Abuja, Emmanuel Agabi, a member of the CCSG, praised Chief of Naval Staff Emmanuel Ogalla for exercising the kind of leadership that is leading to success in the battle against crude oil theft.

Agabi stated that the navy’s forward operating bases in the Niger Delta area have been reorganised by the chief naval staff, who has shown a “exceptional commitment” to combating oil theft.

He went on to say that the bold move to secure national assets is the deployment of 500 ballistic boats, two helicopters, and ten warships as part of a special amphibious exercise.

“The results are impressive. Nigeria recorded its highest oil production in almost two years, with crude oil production rising from 1.08 million barrels per day in July 2023 to an average of 1.38 million barrels per day in January and February 2024, representing a 300,000 bpd increase.

Furthermore, from an average of 16 LNG export shipments per month in 2023 to 21 monthly in the first quarter of 2024, Nigeria is now exporting 21 LNG.

“The reduction in oil theft and illegal refining has led to a decrease in oil spills and environmental degradation, which has a positive impact on the livelihoods of people in the region.

“We commend the Nigerian Navy for their dedication and hard work in securing our national assets and increasing government revenue.”

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