CAPITALDIGEST, DAILY NEWS. 3RD MARCH 2022
MONDAY 28/2/2022 – MARKETERS COMPILE LOSSES ON BAD FUEL, TO DEMAND COMPENSATION FROM GOVT
Oil marketers have commenced the compilation of losses incurred by filling stations as a result of the purchase of bad fuel imported into Nigeria in January and shall be demanding compensation from the Federal Government, it was learnt on Sunday. Filling station owners under the aegis of the Independent Petroleum Marketers Association of Nigeria, the largest operators of retail outlets across the country, described the losses incurred due to the purchase of the methanol-blended fuel as terrible. The National Secretary, IPMAN, Chief John Kekeocha, told our correspondent that the contaminated Premium Motor Spirit, popularly called petrol, had stopped the operations of many filling, a development that contributed to the lingering fuel scarcity. Asked whether marketers had met the government as regards this concern, he replied, “Yes arrangements are on ground. IPMAN is making a serious arrangement, collating all marketers who suffered this great loss together. “We are making arrangements to meet with the government to ensure that all these people who incurred this terrible loss are compensated.” When asked to stated the amount of compensation to be made, Kekeocha replied, “Up till now we are still on the compilation and collation because it is something that affects many marketers in various parts of the country. “We are getting the reports gradually. So when the proper collations are made, we will then present a wholesome request to the government.
TUESDAY 1/3/2022 – INVESTORS GAIN N50.35BN AS 31 STOCKS RISE
Investors gained N50.35bn on Monday at the end of trading on the floor of the Nigerian Exchange Limited. The market capitalisation of the equities listed on the NGX rose to N25.46tn on Monday from N25.41tn on Friday. The NGX All-Share Index also rose to 47,233.91 basis points from 47,140.48 basis points. Thirty-one companies recorded gains at the end of trading on Monday, while 17 companies recorded losses. A total of 421.46 million shares valued at N4.23bn were traded by investors in 5,961 deals. R.T. Briscoe Nigeria Plc and United Capital Plc topped the gainers’ list as their share prices rose by 10 per cent each to 66 kobo and N13.20 respectively. Africa Prudential Plc and Academy Press Plc’s share prices appreciated by 9.56 per cent and 9.5 per cent to 7.45 and 1.96 respectively, while Champion Breweries Plc and May & Baker Nigeria Plc’s share prices appreciated by 8.78 and 8.31 per cent to N2.23 and N4.56 respectively.
WEDNESDAY 23/2/2022 – FG TO PARTNER CBN, SEC ON NATIONAL SAVINGS SCHEME
The Minister of Finance, Budget and National Planning, Zainab Ahmed on Tuesday received the National Savings Scheme Report from the Working Group, with a pledge to collaborate with stakeholders in implementing the recommendations. The working group was constituted virtually by the minister in May 2020 due to the Covid-19 pandemic. Its responsibilities were to study the National Savings Strategy Paper and advise the Federal Government on the feasibility of the proposals and/or recommend changes. It was to also advise on ways and means of mobilising and channeling corporate and individual savings to accelerate domestic capital formation to support entrepreneurs and enterprise development, and consequently achieve the urgent task of diversifying the economy and deepening the capital market among others. In its report, the committee said while it believed that a national savings scheme for Nigeria as proposed in the strategy document is feasible, it must be a mandatory savings scheme for individuals in the formal sector. The report stated that only individuals between the ages of 18 – 50 should be mandated to participate. It added that a national corporate savings scheme was not feasible at this time, noting that the savings scheme must be driven by incentives, primarily tax.
THURSDAY 24/2/2022 – THURSDAY 24/2/2022 – STOCK MARKET GAINS MARGINALLY WITH N7BN
The stock market of the Nigerian Exchange Ltd., (NGX) gained marginally on Tuesday with N7 billion to close at N25.464 trillion, from N25.457trillion on Monday. Also, the NGX All-Share Index appreciated marginally by 0.03 per cent to close at 47,246.90 basis points from 47,233.91 basis points. Sectorally, the NGX Insurance deprecated by 0.6 per cent, NGX Consumer Goods dipped by 0.4 per cent, and NGX Banking index also dropped 0.1per cent. The NGX Industrial Goods, on the other hand, rose 0.02 per cent while Oil & Gas indices rose 0.01 per cent. As measured by market breadth, market sentiment was positive as 29 stocks gained relative to 18 losers. Among the top five gainers are May & Baker, which rose by 44 Kobo to close at N5.00 from N4 56 per share, representing 9.65 per cent while Cutix Plc gained 9 Kobo to close at N2.84 from 2.59 per share, an increase of 9.65 per cent SCOA Plc increased with a gain of 23 kobo to close at N2.58 from N2.35 per share, representing 9.78 per cent.
FRIDAY 25/2/2022 – NAIRA LOSES 10.6% OF ITS VALUE ANNUALLY, SAYS IMF
The International Monetary Fund says the long-term rate of the depreciation of the naira equates to a loss of 10.6 per cent of its value annually since 1973. According to the IMF, this rate is 1.5 times higher than the long-term rate of the currencies of other emerging market and developing economies at 7.2 per cent, and Sub-Saharan Africa at seven per cent over the same time period. The Washington-based lender disclosed this in its ‘Nigeria: Selected Issues Paper’ report. According to the report, this is one of the reasons why Nigeria’s inflation rate is higher than that of its peers. The report read in part, “Nigeria’s long term average rate of CPI inflation (1971-2020) was 16 per cent, which is higher than both SSA (13 per cent) and EMDE (13.6 per cent) averages. “Compared to SSA (7.2 per cent) and EMDE (6.2 per cent) median, the difference is more pronounced. Two possible explanations come to one’s mind upon data investigation.