1.What It Means For Nigeria To Be Kicked Out Of The JP Morgan EM Bond Index
JP Morgan Chase (JPM) on Tuesday issued a press release saying it will start phasing out Nigeria from its Emerging Market Bond Index this month and will completely yank Nigeria off the index by end of October. The bank cites the current restrictions on forex transactions and policies of the CBN as its reasons alleging that it has prompted investor concerns about a shortage of liquidity. JP Morgan had earlier in the year warned that it will take Nigeria out of the index if the current CBN policies which most investors see as capital controls is not reversed. The potential implications of this move are far-reaching as JP Morgan Index is currently tracked by over $200 billion Funds. Here are a few immediate implications for Nigeria.
4.Is This Why Diageo ‘Desperately’ Wants To Own 70% Of Guinness Nigeria?
News broke on Wednesday that Diageo the parent company of Guinness Nigeria Plc was looking to increase its stake in its Nigerian subsidiary to 70%. To the shock of many investors they were even willing to buy Guinness Nigeria shares at a price of N175, more than a 40% premium to the closing price of N125.05 as at September 9, 2015.
9.Why Investors Are Wary About UBA’s Latest Proposed Dividend
UBA Plc released its 2015 Half Year results showing profit after tax profits rose 40% to N39.9 billion. The results on a quarter on quarter basis also showed pre-tax profits rose 12% to N20.6 billion signifying an across the board improvement in earnings.
10.Here Is Another Reason Why Investors Are Taking-Off From Nigerian Stocks
The NSEASI recorded its second decline in as many days today, paring by 0.17% to peg the YtD return of the market at –15.16%. Also, the volume and value of transactions declined respectively by 33.38% and 27.82% correspondingly, while 24 stocks advanced against 27 stocks that pared to skew the market breadth (0.89x) in favour of decliners.