Opinion

Equities Flourishing on Developments in the FX Market …But for How Long?

The depressed state of the Nigerian economy over the last two years has been broadly reflected in capital market activities. Foreign investors’ appetite for Nigerian assets has waned significantly on the back of currency crisis which in turn has fundamentally weakened macroeconomic performance, dragged corporate earnings and also impacted on equities market viability. This condition has also lingered into the year 2017 as investors have been dumping equities for less risky investment opportunities in the fixed income market especially given the current relatively high yield environment.

Taxation of Entertainers and Sportsmen in Nigeria –What, How and Where?

It is trite that around the world, entertainers and sportsmen are some of the highest paid individuals. Their sources of income are vast, ranging from performance and appearance fees to endorsement deals, royalties from image rights, tournament participation fees, etc. These incomes are often earned in multiple jurisdictions, which can potentially make accounting for appropriate taxes complicated.

Understanding the Economics of Tourism in Nigeria

In most gatherings of experts in the travel & hospitality industry, tourism as a tool in diversifying the Nigerian economy has received the most attention and provoked lots of intellectual comments. This is not surprising at all considering the huge potential that this particular sector possesses. In most developed and developing countries, tourism has enriched the economies of these countries thus becoming one of the major sources of income and a pillar of commerce.

Purchasing Managers’ Index Reaffirms Economic Recovery

The Central Bank of Nigeria (CBN) recently released the Purchasing Managers’ Index Report for April, with data showing an upturn in manufacturing activity in the first month of the new quarter. Buoyed by knock-on effects of the significant improvement in fiscal balance and the FX market – particularly related to FX liquidity – April manufacturing PMI expanded to 51.1 points (relative to 47.7 points in March 2017) after three consecutive months of contraction, settling in the positive region for the first time in 2017.

Investors-Exporters FX Window: Solution or Yet Another Palliative?

In response to the weak level of autonomous participation in the domestic FX market, the CBN launched a new FX window on Monday - tagged “Investors’ & Exporters’ FX Window”(IEFW) - which is expected to have portfolio investors, exporters, authorised dealers as well as the CBN as market participants.

The United States of Uncertainty

US president Donald Trump has already alienated some companies with his attempted travel ban but others are hoping that the former entrepreneur’s policies will result in a positive business environment in the country. What is clear is that his administration will be unlike any seen before, as Erika Morphy reports.

Shortly after US president Donald Trump’s inauguration, Nestlé USA announced it was moving its corporate headquarters across the country from Glendale in California, to Arlington, a suburb a few kilometres outside of Washington, DC.

Blooming Spring: IMF Maintains 0.8% Growth Projection for Nigeria

Ahead of the IMF World Bank Spring meetings which commenced today April 21st, the International Monetary Fund (IMF) released its April 2017 World Economic Outlook (WEO) earlier in the week with revised projections for global and regional economies as well as highlights of downside risks to the global growth.

Earnings Review: Resilience amidst Macroeconomic Challenges

In line with the challenging macroeconomic landscape in 2016 which weighed on household, government and investment spending as well as operating and financing cost, the operating environment for corporates has remained tight as reflected in the performance of macroeconomic indicators such as GDP, FX rate and inflation.

Domestic Investors Retain Dominance in Equities Trading

The Nigerian Stock Exchange (NSE) recently released a report on Domestic & Foreign portfolio participation in equities trading for February 2017. The report showed total transactions decreased M-o-M for the first time since November 2016, settling at N74.1bn, a 22.1% M-o-M decline from N95.3bn recorded in January 2017. The figure also came in 36.8% lower Y-o-Y compared to the N117.3bn recorded in the same period in 2016.

Pages

myfinancialintelligence.com