Business News
Trading on Nigerian equities has dropped by 44%
Nigeria’s equity market in the last 5-month, has experienced significant drop in its trading. This is according to data from the NSE.
Trading in the Nigerian equities market experienced a significant drop in the past five months. According to data obtained from the Domestic & Foreign Portfolio Investment Report of the Nigerian Stock Exchange (NSE), the drop was experienced as investors continue to weigh potential returns against macroeconomic risks.
Transaction Value: The total transactions of value for the five months period ended Friday, May 31, 2019, stood at N790.31 billion compared to N1.409 trillion recorded in the corresponding period of 2018. This, however, represents a drop of 44 percent.
Breakdown of the Value: The data indicated a slowdown in both foreign and domestic participation in the equities market.
Total transactions by foreign portfolio investors halved from N697.3 billion in the first five months of last year to N376.05 billion in the first five months of this year. This represented a drop of 46.07 percent.
[READ ALSO: Foreign investment outflows is on the rise]
Total domestic transactions also halved from N712.17 billion recorded in the five-month period ended May, last year to N414.25 billion in the first five months of the year. This represents a drop of 41.8 percent.
Further analysis showed that domestic investors continued to dominate transactions during the period. Domestic investors contributed 51.02 percent of total transactions during the period ended May 2019, inching up from 50.53 percent recorded during the period ended May 2018.
Foreign participation, however, dropped slightly from 49.47 percent last year to 48.98 percent this year.
Any hope of recovery? Looking at the future in a short to medium term form, analysts at Cordros Securities believe that the Nigerian equities market has hope of recovery. According to them, the outlook for the equities market is conservative. They cited the absence of an immediate positive catalyst.
“We reiterate our view that the blend of a compelling valuation story, together with positive macroeconomic picture leaves scope for market recovery in the medium term. However, we guide investors to tread the cautious trading path in the short term.” — Cordros Securities
READ MORE: Nigerian Eurobonds Maintain Strong Rally as Global Central Banks Turn Dovish
Coronavirus
COVID-19 Update in Nigeria
On the 6th of March 2021, 195 new confirmed cases and 10 deaths were recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 158,237 confirmed cases.
On the 6th of March 2021, 195 new confirmed cases and 10 deaths were recorded in Nigeria.
To date, 158,237 cases have been confirmed, 137,645 cases have been discharged and 1,964 deaths have been recorded in 36 states and the Federal Capital Territory.
A total of 1.54 million tests have been carried out as of March 6th, 2021 compared to 1.49 million tests a day earlier.
COVID-19 Case Updates- 6th March 2021,
- Total Number of Cases – 158,237
- Total Number Discharged – 137,645
- Total Deaths – 1,964
- Total Tests Carried out – 1,544,008
According to the NCDC, the 195 new cases are reported from 17 states- Lagos (70), Kaduna (22), Abia (20), Edo (18), Kano (10), Akwa Ibom (9) Rivers (7), FCT (7) Borno (6) Bauchi (5), Osun (5), Oyo (5), Plateau (3), Ekiti (3), Niger (2), Ogun (2) and Zamfara (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 56,374, followed by Abuja (19,328), Plateau (8,939), Kaduna (8,623), Oyo (6,761), Rivers (6,651), Edo (4,645), Ogun (4,419), Kano (3,830), Ondo (3,066), Kwara (2,953), Delta (2,582), Osun (2,449), Nasarawa (2,248), Enugu (2,078), Katsina (2,060), Gombe (2,010), Ebonyi (1,951), Anambra (1,811), Akwa Ibom (1,588), and Abia (1,568).
Imo State has recorded 1,551 cases, Borno (1,297), Bauchi (1,232), Benue (1,188), Adamawa (942), Niger (917), Taraba (863), Ekiti (825), Bayelsa (779), Sokoto (769), Jigawa (496), Kebbi (401), Cross River (334), Yobe (288), Zamfara (221), while Kogi state has recorded 5 cases only.
READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
Governor Babajide Sanwo-Olu of Lagos State announced the closed down of the Eti-Osa Isolation Centre, with effect from Friday, 31st July 2020. He also mentioned that the Agidingbi Isolation Centre would also be closed and the patients relocated to a large capacity centre.
Due to the increased number of covid-19 cases in Nigeria, the Nigerian government ordered the reopening of Isolation and treatment centres in the country on Thursday, 10th December 2020.
On 26th January 2021, the Federal Government announced the extension of the guidelines of phase 3 of the eased lockdown by one month following the rising cases of the coronavirus disease in the country and the expiration of phase 3 of the eased lockdown.
On 28th February 2021, the federal government confirmed that the first tranche of Covid-19 vaccines will arrive in Nigeria on Tuesday, March 2nd, 2021.
READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous
Manufacturing
CBN tasks multinationals on domestic production as P&G signs $35m deal to produce Oral-B locally
The CBN Governor has called on multinationals operating in the country to work towards the production of their goods in Nigeria.
