FG outlines steps to be taken by businesses to export to AfCFTA countries
Neimeth Pharmaceuticals to raise N5 billion in additional equity
Buhari appoints Abubakar Nuhu Fikpo as Acting DG of National Directorate of Employment
Covid-19: WHO warns the world faces catastrophic moral failure due to vaccine nationalism
Will the world of business change for good?
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦470/$1
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Naira remains stable across forex markets as external reserve continues to rise
Oil prices tumble on fears of global economic recovery
Business News
Airtel and MTN Nigeria are sending bad signals from NSE to Glo, 9mobile
In May 2019, @MTNNG listed on the Nigerian Stock Exchange (@nsenigeria). The move was perceived by many as both an invitation and a challenge to other telecoms companies such as @GloWorld and @9mobileng to do the same.
In May 2019, MTN Nigeria listed on the Nigerian Stock Exchange (NSE). The move was perceived by many as both an invitation and a challenge to other telecoms companies to do the same. Since then, Airtel Africa has equally listed, even as it remains Globacom and 9mobile.
If Globacom and 9mobile were considering taking up the challenge before, that probably has changed, no thanks to the bad signals being received from the stock market lately.
Network providers are recording poor performance on the NSE. Before Airtel Africa joined MTN Nigeria on the NSE, the latter was struggling to maintain its share price. That has continued, following Airtel Africa’s listing.
The Bharti subsidiary followed in the footsteps of MTN Nigeria after its successful first day of trading which saw a 10% increase in its share price. Airtel Africa’s stock price has since dropped consecutively for two days.
[READ ALSO: This is why Airtel withdrew from 9mobile bid process]
Airtel’s performance on LSE: The company’s performance on the London Stock Exchange has also generally been bearish. The stock traded flat on Thursday at 72 pence. Airtel Africa’s LSE share price had declined by 15% on its first day of trading London on June 28, making it one of the worst debuts on the European exchanges this year.
Airtel’s performance on NSE: On July 10th, Airtel was among the losers on NSE, falling by 10% to trade at N359.40 Kobo against IPO price of N363. This is after initially gaining 10% on its first day of trading and hitting N399.30 Kobo per share.
MTN Nigeria Airtel Globacom and 9mobile
The company also plunged by 9.99% at the stock market on Thursday, occupying the losers’ chart with MTN Nigeria which as well recorded a drop in share price.
MTN Nigeria’s performance on NSE: MTN Nigeria also dropped by 2.26% on the NSE floor, closing the market at N129.5 Kobo per share after opening with N133. The company had climbed from N129.05 to N133 on Wednesday but fell again on Thursday. It had opened the market this week at N129.45.
[READ ALSO: Nigerians on alert as Uganda reveals plans to tax WhatsApp, Facebook users]
It has been a rather disappointing outing for telecommunications company this week, and this is not encouraging to lure other network providers like Globacom and 9mobile which have been tipped to follow in Airtel and MTN’s path. Investors’ confidence seems not to be high for telecoms’ stocks and they are making this known with the way they invest in the first and second largest telcos in Nigeria.
Generally, investors in the Nigerian market have been cautious of their activities due to the low growth in Nigeria. Also, the failure of President Muhammadu Buhari to appoint a cabinet months after his re-election is a contributing factor.
[READ THIS: What to know in order to become an International Investor]
Companies
Neimeth Pharmaceuticals to raise N5 billion in additional equity
The Board of Neimeth is set to raise N5 billion additional equity upon the approval by shareholders of the company at the AGM.
Appointments
Buhari appoints Abubakar Nuhu Fikpo as Acting DG of National Directorate of Employment
President Buhari has appointed Abubakar Nuhu Fikpo as the Acting DG of the National Directorate of Employment.
Coronavirus
Covid-19: WHO warns the world faces catastrophic moral failure due to vaccine nationalism
The WHO has said that the prospects of equitable distribution of COVID-19 vaccines were at serious risk.
The World Health Organization (WHO) said the world is on the brink of a catastrophic moral failure due to the fear of Covid-19 vaccine nationalism by the wealthy countries, while the poor countries are left behind.
This is as the UN health agency revealed that the prospects of equitable distribution of the vaccines were at serious risk just as its COVAX vaccine-sharing scheme plans to start distributing inoculations in February.
According to a report from Reuters, this disclosure was made by the Director-General of the WHO, Tedros Adhanom Ghebreyrsus, at the opening of the body’s Annual Executive Board virtual meeting.
He pointed out that 44 bilateral deals were signed last year and at least 12 have already been signed this year.
What the WHO Director-General is saying
Tedros warned against vaccine nationalism to avoid making the same mistake during the HIN1 and HIV pandemic.
The WHO boss in his statement said,
- “This could delay COVAX deliveries and create exactly the scenario COVAX was designed to avoid with hoarding, a chaotic market, an uncoordinated response and continued social and economic disruption. Such a ‘me-first approach’ left the world’s poorest and most vulnerable at risk.
- “Ultimately, these actions will only prolong the pandemic, countries should avoid making the same mistakes made during the H1N1 and HIV pandemics.’’
He expressed his reservations over the ‘me-first’ attitude of the rich countries and the vaccine manufacturers who prioritize going for regulatory approval in wealthy countries rather than submitting their data to WHO for approval of the vaccines for use globally.
The global scramble for shots has intensified, as more infectious virus variants circulate.
Tedros said more than 39 million vaccine doses had been administered in 49 higher-income countries, whereas just 25 doses had been given in one poor country.
Observers say this board meeting, which lasts until next Tuesday, is one of the most important in the U.N. health agency’s more than 70-year history, and could shape its role in global health long after the pandemic ends.
What you should know
- The WHO and health experts had severally warned against nationalism as a serious threat to the fight against the coronavirus pandemic.
- They had called for an equitable distribution of the Covid-19 vaccine amongst all countries globally, as the wealthy nations will still be at risk of the pandemic if the poor countries are still battling with the disease.
Bigz
July 12, 2019 at 9:08 am
hello Lekan, i want to ask, how has the failure of President to appoint a cabinet months after his re-election a contributing factor to the decline of shares on the NSE?
Arinze C Onwuteaka
July 12, 2019 at 12:36 pm
Am not sure this is an objective analysis as the whole exchange is experiencing same bearish trend so to isolate the 2 telecos would not be a good way to go.
Perhaps if the general trend was a bullish one and then the 2 telcos are going south then one can say they are not encouraging the others to come onboard.
One could infer also that the timing was not right given the current market sentiments, there again, there are processes so if by the time all these are concluded and the market, due to either economic or peculiar events turn south, would that also be a basis to say they have sent wrong signals.
i think it would be nice to look at their fundamentals and then if the market under normal circumstance is good would their prices trend upwards or south….if otherwise then…
Just my thoughts
Arinze
Brian
July 12, 2019 at 4:47 pm
Excellent input Arinze
Ipadeola Jonathan Okesooto
July 17, 2019 at 2:34 pm
We need to generally appraise the ability to raise cheap capital from NSE