Markets

External Reserves Drops by 23.3%

Nigeria’s external reserve has dropped by 23.3% ($11.3bn) from $48.4bn in May 2013 to $37.1bn as of May 27 this year.

According to a recent data from the Central Bank of Nigeria, the foreign reserves which had witnessed a huge decrease of $4.72bn btw January and April also decreased by 2.62% month-on-month to $37.14bn as of May 27, from $38.14bn a month earlier.

NSE All-Share Index Advanced by 0.77%

For the first time in months, the Nigerian Stock Exchange (NSE) All-Share Index rose above 40,000 basis points on Tuesday, May 27, 2014.

In the first quarter of 2014, the All-Share Index fell below 38,000 basis points compared to the impressive 47% return with an All-Share Index at 41,329.19 points with which the NSE closed 2013 with.

The second quarter of 2014 is gaining stability in the market and on Tuesday, the NSE ASI advanced by 0.77 per cent or 305.77 basis points to 40,061.24 basis points.

NSE; All-Share Index Declines by 0.19%

The equity market closed on a negative note on Monday, May 26, 2014, as equities failed to keep up with the gains made on Friday.

Compared to the 0.7% rise it recorded in the previous session, the NSE All-Share Index dropped by 0.19% or 76.36 basis points.

Closing at N13.127tn from N13.152tn, the market capitalization of the listed equities also declined by N25bn or 0.19%.

FGN; Capital Inflow for Q4 2013 Increases by 24.3%

The aggregate foreign capital inflow into Nigeria increased from $3.97bn in Q3 2013 to $4.94bn in Q4 of same year indicating an increase by 24.3%. This increase was mostly as a result of an increase in direct investment and portfolio investment inflows.

In Q4 2013, both direct and portfolio investment inflows increased by 16.1% and 26.6% to $1bn and $3.94bn respectively in comparison to $0.86bn and $3.11bn obtained in Q3 of the same year.

Naira Weakens Against Dollars on demand pressure

At the Inter-bank market on Monday, May 19, amid the Central Bank of Nigeria's (CBN) $345.9mn defence, the Naira fell against the US dollars, losing N0.19k.

Although a total of $400mn was offered by the CBN, it sold a total of $345.9mn at the rate of N177.73/$ to some deposit banks at its Retail Dutch Auction System (RDAS).
The data from the Financial Market Dealers Quotation (FMDQ) also indicated that Naira closed on Monday, May 19, at N162.59/$ as against N162.40/$ at the Inter-bank market.

IPF Rules Approval to Promote Investors’ Confidence

The Nigerian Stock Exchange has approved rules to govern the Investor Protection Fund (IPF). The Chief Executive Officer, NSE, Mr. Oscar Onyema, who disclosed this, said the move would enable the Board of IPF to commence work, which will boost investor confidence. The IPF, a World Bank-funded scheme aimed at boosting confidence in the equities market, is meant to provide compensation to investors who are defrauded.

Nigerian Bonds: FMDQ, Bloomberg Debut New Trading Platform

The Bloomberg E-Bond trading and market surveillance system, a new electronic trading system for Nigerian government bonds, have been launched by Bloomberg and FMDQ OTC Plc. Trading under FMDQ’s over-the-counter (OTC) market securities exchange, the system seeks to add transparency, liquidity and efficiency to Nigeria’s growing fixed income market. “A well-functioning debt market needs an efficient technical infrastructure, bespoke trading rules, market surveillance and straight-through processing.

Market indicators Appreciate marginally

The equities section of the Nigerian Stock Exchange on Monday closed higher, although slightly, with the foremost indicators edging higher.

The NSE All Share Index rose by 0.01% to close at 39,564.43 basis points in contrast to a 1.73% appreciation on Friday, which saw it leap from 38,885.93 points to 39,558.89 points. Also, the market capitalisation of the listed equities scaled from 0.01% to 1.73%.

CIS - Private Trading Floor will Improve Stockbroking

The Chartered Institute of Stockbrokers (CIS) has said the construction of a private trading floor in Lagos will promote professional stockbroking in the country. The Institute said this when members of its council, led by the President, Mr. Ariyo Olushekun, visited the 150 seat multipurpose private trading floor built by GTI Securities in Lagos.

The emergence of the trading floor, which is designed to allow brokers and dealers trade on the Nigerian Stock Exchange will allow stockbrokers to practice as professionals ‘in their own right.’

West African Market Integration Commences

West African Capital Market Integration programme, which is linked to the West African Monetary Institute, was established in 2001 by the heads of state in the West African Monetary Zone. It has organised a series of workshops, signaling the inauguration of the planned integration of capital markets in West Africa.

According to the Chairman, WACMIC, Mr. Oscar Onyema, the market integration will take place in three phases.

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