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Nigerian Stock Exchange Projects Improve Market Transactions

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The Nigerian Stock Exchange, NSE, on Wednesday, said it expects the marginal reopening of businesses, normalization of the economy and revenue-diversification drive of the Federal Government to elicit positive market transactions throughout the year.

The Exchange also disclosed that members of the investing public will be given access to own shares of the NSE as it plans to list its shares by way of introduction.

It also envisaged the stock market to be most dominated by local investors given the foreign exchange volatility and low   interest rate policy of the Central Bank of Nigeria, CBN. Chief Executive Officer, NSE, Mr Oscar Onyema, while briefing capital market stakeholders and operators said: “We plan to list the shares of the Exchange by way of introduction and this will give the investing public opportunity to buy shares as members of the Exchange release part of their shares for sale. But the larger participation of the public will occur when the Exchange floats an Initial Public Offering, IPO.”

On market recap for 2020, Onyema said: “The year 2020 was indeed a historic one for global capital markets. Facing buffeting headwinds, world markets saw sharp swings and steep losses, but largely remained resilient and orderly amid rising uncertainty.

For the Exchange, renewed investor optimism coupled with improved economic conditions and low fixed income yields, propelled a year-end bull run.

Of 93 global equity indices tracked by Bloomberg, the NSE All Share Index (ASI) emerged the best-performing index in the world, surpassing the S&P 500 (+16.26%), Dow Jones Industrial Index (+7.25%) and other global and African market indexes, to post a one-year return of +50.03%.”

He noted that the outbreak of COVID-19 and its rapid spread across the globe in the first quarter of the year triggered panic selling by global investors.

“According to the World Federation of Exchanges (WFE), global capital markets lost USD18 trillion due to the pandemic over the course of February and March 2020 alone. However, diverging from grim economic projections, global markets saw a rebound following the sharp drop in March, as many indicators recovered to pre-pandemic levels by June 2020, fuelled by extraordinary stimulus packages, monetary policy actions and public health responses from world governments and economic actors.”

While projecting the outlook for 2021, the NSE CEO said: “Looking ahead, the year has started on a positive note as the ASI has already returned 2.0% after 11 trading sessions.

“We expect the marginal reopening of businesses, normalization of the economy and revenue-diversification drive of the Nigerian government to elicit positive sentiments throughout the year.

“Our growth expectations should be noted with caution, as the recent second wave of COVID-19 in Nigeria and globally, may slow down renewed social and economic activities.”

Continuing, he said: “As the NSE transitions to a de-mutualised exchange group, the appointments of Mr. Temi Popoola as the CEO of NGX and Ms. Tinuade Awe as CEO of NGX REGCO were recently announced.

The NSE believes that these appointments will support its vision to be “Africa’s preferred Exchange Hub” and looks forward to consolidating on the benefits of demutualisation in the coming year. The Exchange also reiterated its intention to aggressively pursue cutting-edge products and services, access new markets and deliver better value to its stakeholders.”

Vanguard

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Business

Mozambique Scandal: Credit Suisse & U.S. Conclude Deal

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Credit Suisse Group AG is nearing an agreement with the U.S. government that would resolve a criminal probe regarding its role in a U$2 billion Mozambique bond scandal, according to people familiar with the matter.

The discussions with the U.S. Justice Department involve a deferred prosecution agreement that would include a fine, according to the people, who asked not to be identified because the talks are confidential. An agreement is expected to be announced Tuesday.

Any deal with U.S. prosecutors would be the latest action in a multi-year, international legal saga arising out of the 2013-14 deals that were supposed to fund a new coastal patrol force and tuna fishing fleet in Mozambique, one of the world’s poorest countries.

In a 2018 indictment, the U.S. Justice Department alleged the contracts were a front for government officials and bankers to enrich themselves.

Three former Credit Suisse bankers have pleaded guilty to U.S. charges stemming from the scheme.

Credit Suisse declined to comment on any agreement, as did the U.S. Justice Department.

A deal could help put to bed one scandal, even as the bank has been punished this year by investors for its stumbles with Archegos Capital Management and Greensill Capital, which have spurred broad management shakeups.

Mozambique has filed suit against Credit Suisse and shipbuilder Privinvest, one of several cases in U.K. courts that involve the bond deal.

Unlawful Conduct’

In defending its London lawsuit, Credit Suisse has insisted that it was deceived by rogue bankers and couldn’t be held responsible for their “unlawful conduct” when it arranged the loans in early 2013.

The Swiss bank has said it carried out its usual due diligence before the transactions and was aware of the risk of bribery and corruption.

Andrew Pearse, who led the global financing group in the bank’s London office, testified at a federal trial in Brooklyn, New York that he’d pocketed at least U$45 million in illicit payments for his role in the arrangement of the loans.

The Credit Suisse loans were for three separate maritime projects including a tuna fishing fleet, the building of a shipyard and surveillance operation to protect Mozambique’s coastline and protect against pirates, according to Pearse.

Mozambican government officials, corporate executives and investment bankers stole about U$200 million, prosecutors said.

Both Pearse and his successor at the bank, Surjan Singh, who also pleaded guilty, testified at the 2019 trial of Jean Boustani, a Privinvest Group executive accused by the U.S. of being behind the plan to get Mozambique to borrow billions of dollars and overpay for dubious maritime projects.

A third banker, Datelina Subeva, Pearse’s subordinate, also pleaded guilty but didn’t testify.

All three bankers await sentencing. After a six-week trial in late 2019, a federal jury cleared Boustani of all charges.

Bloomberg

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DRC Opposition Protests Against Phone Tax

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Martin Fayulu, DRCs leader of opposition coalition LAMUKA has called upon all citizens to take to the streets and demand for the abolition of a controversial mobile phone tax.

In June 2020, the DRC government set up – through the ICT, Post and Telecoms Ministry – a CEIR system (Central Equipment Identification Register), with the aim to fight fake devices and the theft of mobile devices.

However, Telephony mobile users claim the Mobile Device Registry (RAM), a controversial new tax is robbing them of their units and making them poorer.

In terms of RAM, mobile operators are cutting a big chunk of units monthly from their customers’ mobile devices, which many users believe is too high and unnecessary.

“We are calling for the immediate withdrawal of RAM. Because it’s theft, a scam. That no one is demobilized. Let’s march and denounce it because it is outright  theft. Once withdrawn, all money collected must be returned, ”said Martin Fayulu.

During a meeting this Saturday, October 16, 2021 in Kinshasa, Martin Fayulu called for the outright abolition of this fee.

During the rally, the leader of Lamuka pinpointed other topical issues, including the issue of appointing the leaders of the Independent National Electoral Commission (CENI).

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Tanzania’s Economy Records 4.3% Expansion in 2nd Quarter

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Tanzania’s economic outlook seems very impressive as the country registered a 4.3% expansion between April and June according to the country’s National Bureau of Statistics (NBS).

Compared to the country’s economic performance in the same period last year, there has been a 0.3% upward expansion.

Briefing the media on Friday, Daniel Masolwa NBS Director of Economics Statistics, said, “Real GDP increased to Shs 33.4trillion from Shs 32trillion in the corresponding period in 2020, an equivalent to a 4.3% growth,” he said.

During the second Quarter of 2020, Tanzania’s economy registered the lowest growth rate of 4.0% since 2017 mainly due to the devastating effects of Covid-19 pandemic following the introduction of lockdowns and many countries to mitigate spread of this pandemic.

However, Masolwa tried to cool down any skepticism saying, the annual economic growth in 2021 is projected at a 5.0% rate. In terms of economic activities, he  said, during the period under review, information and communication attained the highest growth of 12.3%, followed by electricity generation at 12.1%.

Meanwhile, other services include arts and entertainment and households as employers (10.8%), accommodation and food services (10.1%), water (8.4%), and mining and quarrying (7.3%).

According to Masolwa, the expansion of economy by 4.3% during the second Quarter of 2021 was spearheaded by key drivers of growth which include Agriculture (13%), transport and storage (8.4%), trade and maintenance (8.1%), manufacturing (7.6%) and construction (7.1%).

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