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CAPITALDIGEST DAILY NEWS. 22 NOVEMBER 2021

MONDAY 15/11/2021 – CHEVRON, EXXONMOBIL, OTHERS TO PAY NNPC N156BN FOR CRUDE EXPORTS Nine multinational oil companies including Chevron and ExxonMobil will pay the Nigerian National Petroleum Company Limited a total of N156.148bn this for the August 2021 domestic crude oil exports, the NNPC has said. A document obtained from NNPC in Abuja on Sunday showed that the firms, which were joint venture partners of the national oil company, exported hundreds of thousands of barrels of crude oil in August. In the August 2021 domestic crude oil payable in November 2021 report, the NNPC explained that the remittance was in line with its payment policy of 90 days period. Analysts said the N156.148bn expected this month from the JV partners of NNPC would go a long way in boosting the revenue from oil, considering the fact that the country’s oil production dropped in October. Figures released by the Organisation of Petroleum Exporting Countries on Thursday showed that Nigeria recorded a decrease in crude oil production in October 2021 when compared to volumes produced in the preceding month. “It is good to know that the country is getting remittances from its joint venture partners in the oil sector because Nigeria needs all the funds it can get now,” a former President of the Association of National Accountants of Nigeria, Dr. Sam Nzekwe, stated. In the document seen on Friday, the NNPC outlined the nine joint venture companies that would make payments this month for the domestic crude oil they exported in August 2021.   TUESDAY 16/11/2021 – Four banks borrow $6.21bn from foreign market amid dollar shortage In a bid to support their balance sheets with foreign exchange, four banks in the country raised $6.21bn from foreign creditors between January and October 2021. An analysis of reports shared on the issuer’s portal of the Nigerian Exchange Limited revealed that Access Bank Plc, Ecobank Transnational Incorporated, Fidelity Bank Plc and the United Bank for Africa Plc sought dollar liquidity through secure and unsecured notes, three of which listed their notes on the London Stock Exchange. On February 11, Ecobank notified the NGX of successful pricing of its $300m fixed-rate, dollar-denominated bond, carrying a coupon rate of 7.125 per cent. It said the issuance was oversubscribed three times, with about $900m raised. The rating of B- from Fitch Ratings hinted that the bank was more vulnerable to adverse business, financial and economic conditions but could meet its financial commitments as of the time of issuance. The bank also announced a $350m tier 2 sustainability Eurobond raise in July issued with a coupon of 8.75 per cent, which was oversubscribed 3.6x, amounting to $1.3bn at its peak. Access Bank, as part of its expansion drive, raised two tranches of Eurobonds in September. Its $500m senior unsecured Eurobond rated B by Fitch Ratings and B2 negative outlook by Moody’s showed there was a high credit risk and vulnerability to adverse business, financial and economic conditions, but with a capacity to meet financial obligations.   WEDNESDAY 17/11/2021 – ENAIRA MAY REDUCE DEPOSITS IN COMMERCIAL BANKS, IMF WARNS CBN The International Monetary Fund has said the eNaira wallet may function as a deposit at the Central Bank of Nigeria and consequently reduce demand for deposits in commercial banks. The comment came barely four weeks after the President, Major General Muhammadu Buhari, and top officials of the central bank launched the eNaira at the State House, Abuja. As a result, the Washington-based fund on Tuesday warned the CBN to manage the various risks associated with the digital currency especially the threats it pose to monetary policy implementation, cyber security, among others. The IMF disclosed this in its ‘Country Focus; Five Observations on Nigeria’s Central Bank Digital Currency.’ The global body said, “Like digital currencies elsewhere, the eNaira carries risks for monetary policy implementation, cyber security, operational resilience, and financial integrity and stability. “For example, eNaira wallets may be perceived, or even effectively function, as a deposit at the central bank, which may reduce demand for deposits in commercial banks. Relying as it does on digital technology, there is a need to manage cyber security and operational risks associated with the eNaira.” According to the IMF, the launch of the digital currency is drawing interest from the global world, and other central banks because of the size and complexity of Nigeria’s economy.   THURSDAY 18/11/2021 – Stock market loses N49bn as 24 firms decline The equities market of the Nigerian Exchange Limited declined by N49.21bn at the end of trading on Wednesday as 24 firms saw their share prices fall. The NGX All-Share Index dropped by 0.22 per cent to close at 43,349.9 basis points from 43,444.20bps on Tuesday, while the market capitalisation fell to N22.62tn from N22.67tn. Market activities was negative as the total volume of shares exchanged fell to 264.79 million units valued at N6.08bn in 4,230 deals from 423.83 million units worth N11.65bn in 4,181 deals on Tuesday. FBN Holdings Plc emerged as the most traded stock by volume as it accounted for 25.91 per cent of the total volume of shares traded, while Nestle Nigeria Plc was the most traded stock by value, accounting for 48.85 per cent of the total value of trades on Wednesday. At the end of trading on the floor of the NGX, the market sentiment, as measured by the market breadth, was negative. Fourteen companies appreciated in share price compared to 24 losers. Sectoral performance tilted negative as the insurance, oil and gas, consumer goods and banking indices depreciated while the industrial sector rose.   FRIDAY 19/11/2021 – INVESTORS LOSE N33BN, BANKING, INDUSTRIAL STOCKS DECLINE Stock investors in the Nigerian Exchange Limited recorded a loss of N33.36bn at the end of trading on Thursday as banking and industrial stocks suffered declines. The NGX All-Share Index dropped by 0.15 per cent to 43,285.97 basis points from 43,349.90bps on Wednesday, while the market capitalisation fell to N22.59tn from N22.62tn. Investor activity on the floor of the NGX reduced to 210.55 million shares valued at N2.61bn that were exchanged in 3,423 deals from 264.79 million units valued at N6.08bn in 4,230 deals on Wednesday. Analysing by sectors, the NGX Banking and Industrial Goods indices depreciated by 0.19 per cent each, while the NGX Oil and Gas Index dropped by 0.12 per cent. The NGX Insurance and Consumer Goods indices closed higher by 0.59 per cent and 0.14 per cent respectively. Sterling Bank Plc was the most traded stock by volume as it accounted for 28.6 per cent of the total volume of shares traded on Thursday. Airtel Africa Plc surpassed other stocks in terms of value, accounting for 25.71 per cent of the total value of shares traded at the end of the session.

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