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CAPITALDIGEST, DAILY NEWS, 04/10/2022

NIGERIA LOSES 37% OIL RIG CAPACITY Nigeria’s ability to increase its crude oil production dropped by 37 per cent in less than three years, according to industry statistics. Data from the Organisation of the Petroleum Exporting Countries’ September 2022 Monthly Oil Market Report revealed that the country’s oil rig count dropped to 10 in August 2022, from 16 recorded in 2019. An oil rig is a large structure with facilities to extract and process petroleum and natural gas that lie in rock formations beneath the seabed. A breakdown on how the decrease occurred revealed that as of 2019, Nigeria’s rig count was 16. It dropped to 11 in 2020, and further decreased to seven as of fourth quarter 2021. By first quarter 2022, it increased to eight, and then 10 by second quarter 2022, and moved up to 11 in July 22, before dropping to 10 last month. STOCK INVESTORS RECORD N14BN GAIN The stock market ended the session with a bullish trend as the market rebounded with a gain of N14bn on Wednesday after losing N15bn on Tuesday. The All Share Index rose by 10.25 basis points or 0.02 per cent to close at 49,171.70 basis points as investors gained N14bn in value as market capitalisation went up to N26.531tn. The positive trend was influenced by gains recorded in medium and large capitalised stocks, amongst which are; BUA Cement, Ardova, Sterling Bank, Chams and Jaiz Bank. At the end of last week, the stock was down by N241bn last week as investors traded with uncertainty surrounding the Monetary Policy Committee of the Central Bank of Nigeria scheduled for this week. The CBN on Tuesday after the two-day MPC meeting in Abuja, raised its Monetary Policy Rate to 15.5 per cent. The CBN also raised the Cash Reserve Ratio to 32.5 per cent from 27.5 per cent. CBN LENDS N9.3TN TO BUSINESSES, MANUFACTURERS TAKE 31% The Central Bank of Nigeria has lent N9.3tn to businesses out of which manufacturers lead the pack of beneficiaries with 31 per cent. The apex bank has recovered N3.7tn of the loan while N5tn was not yet due. Director of Development Finance, CBN, Dr Yusuf Yila, disclosed this to journalists on Wednesday in Abuja at a post-287th Monetary Policy Committee press conference, noting that this was the first-time manufacturers were getting a long-term finance scheme with reasonable moratorium. He noted that intervention funds had been slowed down in the bank’s efforts to rein in inflation. He further said that N1tn had been disbursed under the Anchor Borrowers Programme while N400bn had been recovered. CAPITAL MARKET 62 YEARS OF IMPACT: A JOURNEY OF A THOUSAND MILES The Nigerian Stock Exchange (NSE) now Nigerian Exchange Group was founded in 1960 as the Lagos Stock Exchange, on September 15, 1960. Operations began officially on August 25, 1961 with 19 securities listed for trading but informal operations had commenced earlier in June, 1961. As Nigeria celebrates 62 years anniversary, Kayode Tokede writes on how the Exchange has driven Africa’s largest economy, integrated market infrastructure, and its role in wealth creation. The stock market in the early beginning ,From the early beginnings when only 19 securities were listed for trading to the now demutualised market, and over 300 securities composed of stocks, bonds, and Exchange Traded Funds (ETF) worth about N49.6 trillion in overall market capitalisation combined, Nigerian Exchange group Plc (NGX Group) has transformed to Africa’s gateway market, connecting Nigeria, Africa, to the world. NGX ASI HITS 14.77% DESPITE INTEREST RATE HIKES The All Share Index, of the Nigerian Exchange Limited has returned to a high, hitting 14.77 per cent year-to-date, data from NGX shows. According to analysis of daily trading data, Market showed resilience despite three consecutive interest rate hikes by the Central Bank of Nigeria. To curb rising inflation amid both local and global headwinds such as spiralling inflation against the backdrop of soaring food prices; higher energy costs due to COVID-19 fallout; Russian-Ukraine-induced supply chain disruptions; and the continued insecurity in the country; the CBN resorted to raise its overnight Monetary Policy Rate after Monetary Policy Committee meetings were concluded. In total, the CBN had raised MPR by 400 basis points (bps) from 11.5 per cent predating the 24 May 2022 meeting of the MPC to 15.5 per cent as of 27 September 2022.